Mumbai-based Real Estate Player Runwal Enterprises Limited specializes in residential projects catering to affordable, mid-income, and luxury segments, as well as commercial spaces, retail malls, and educational buildings. It has filed its draft red herring prospectus (DRHP) with capital market regulator Securities and Exchange Board of India (SEBI) to raise Rs 1,000 crore through an initial public offering (IPO).
The IPO, with a face value of ₹2 each, is a fresh issue of Rs 1000 crore with no offer-for-sale component.
The company, in consultation with the book-running lead managers, may consider a pre-IPO placement of specified securities, aggregating to Rs 200 crores as pre-IPO placement shall not exceed 20% of the size of the fresh issue. If such placement is completed, the fresh issue size will be reduced. It includes a reservation for a subscription by eligible employees and a discount is being offered to eligible employees bidding in the employee reservation portion.
The issue is being made through the book-building process, wherein at least 75% of the net issue shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15% of the offer shall be available for allocation to non-institutional bidders, and not less than 10% of the offer shall be available for allocation to retail individual bidders.
The proceeds from its fresh issuance to the extent of Rs 200 crore for repayment or prepayment, in full or part, of certain outstanding borrowings availed by the Company; Rs 450 crore for investment in its material subsidiaries namely Susneh Infrapark Private Limited and Runwal Residency Private Limited and its subsidiary namely Evie Real Estate Private Limited, for repayment/ pre-payment, in full or in part, of all or a portion of certain of their outstanding borrowings; funding acquisition of future real estate projects and general corporate purposes.
Runwal Enterprises is a recognized brand in the industry and has a strong presence in Mumbai, according to a JLL Report, mentioned in the DRHP. It has a vision to be a full-service real estate developer in Mumbai, developing both residential and non-residential projects (across the price spectrum) and in communities (including integrated townships) that feature a wide range of amenities and iconic landmarks.
As of September 30, 2024, Runwal Enterprises ranks second in new launches and sales, with market shares of 5.69% and 5.25%, respectively, between January 2019 and September 2024. Across the same period, it has completed 15 projects, with 25 ongoing and 32 upcoming developments.
In Mumbai`s eastern suburbs, it holds the top position in the Kalyan-Dombivli submarket, with 17.63% of total sales and 20.84% of new launches during the same period (Source: JLL Report).
Runwal Enterprises` residential portfolio consists of an aggregate Developable Area and Estimated Developable Area (in the case of Upcoming Projects) of 48.71 million square feet of Completed Projects, Ongoing Projects and Upcoming Projects (Projects) as of September 30, 2024. Initially, its focus was on affordable and mid-income housing, with landmark projects like Runwal Gardens in Dombivli and Runwal Greens in Mulund West. More recently, it has expanded into the luxury housing segment with developments such as 7 Mahalaxmi. It is also widening its footprint in Mumbai, moving beyond the eastern suburbs into areas like Mahalaxmi and Bandra.
Runwal Enterprises` restated consolidated revenue from operations increased by 188.55% from ₹229.49 crore in Fiscal 2023 to ₹662.19 crore for fiscal 2024, primarily due to an increase in revenue from the sale of residential units in select towers of Runwal Gardens project undertaken by the wholly-owned subsidiary, Runwal Residency Private Limited. The Company had a turnaround from being loss-making in FY23 to a profit of Rs 107.28 crore in FY24.
For the six months ended September 30, 2024, restated consolidated revenue from operations and profit after tax stood at ₹270.52 crore and ₹25.53 crore respectively.
ICICI Securities Limited and Jefferies India Private Limited are the book-running lead managers and MUFG Intime India Private Limited is the registrar of the offer. The equity shares are proposed to be listed on BSE and NSE.